Company Update

RNS Number : 0850P

Real Good Food PLC

29 August 2017

 

For immediate release: 29th August 2017

Real Good Food plc

("the Company" or "Real Good Food")

Company Update

The Company announced on 1 August 2017 that it anticipated EBITDA for the year ended 31 March 2017 would be lower than market expectations at approximately £2.0m, subject to final audit.

Since the announcement of 1 August, a review has been undertaken, under the guidance of the Company's new Finance Director, which is now expected to lead to additional audit adjustments relating to inter-company trading and consolidation.  As a result of these additional adjustments, the Board now expects EBITDA for the year ended 31 March 2017 to be in the region of £1.0m.

The Company's banking facility is subject to customary terms, conditions and covenants which are tested quarterly, with the next date at which the Company's banking covenants will be tested being 30 September 2017.  The Board is in discussions with its bankers to vary certain conditions of this facility to reflect the Company's recent and anticipated trading.

In addition, the Board is pleased to announce that its major shareholders, NB Ingredients Ltd, Omnicane International Investors Ltd, and certain funds managed by Downing LLP have confirmed that they will, if required, provide additional funds to support the Company's working capital requirements.

The Group now expects to announce its Final Results for the year ended 31 March 2017 on 29 September 2017.

-Ends-

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

ENQUIRIES:

Real Good Food plc

Chris Thomas, Executive Director                                             Tel: [phone]

Harveen Rai, Finance Director  

Andrew Brown, Marketing Director       

finnCap Ltd (Nomad and Broker)

Matt Goode                                                                                        Tel: [phone]

Carl Holmes

Daniel Stewart and Company Plc (Joint Broker)

David Lawman                                                                                   Tel: [phone]

Belvedere Communications (PR)

John West                                                                                           Tel: [phone]

Kim van Beck

About Real Good Food plc

Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Group focuses on three main markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food Ingredients (Brighter Foods, Garrett Ingredients and R&W Scott) and Premium Bakery (Haydens and Chantilly Patisserie).

 

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